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For some used-car shoppers, 'Fly to Buy' makes most sense

Friday, Jun. 30, 2017, 09:27 AM

By Joe OverbySenior Editor

CAMBRIDGE, Mass. -

While most of the time a used-car shopper isn’t going to stray far from home to buy a vehicle, in certain cases it actually makes more financial sense for them to take a flight to a city where car prices are considerably less expensive.

Or as CarGurus puts it, “Fly to Buy.”

Analysts with the company found that because of the way used-car prices differ across the country, flying to a city with significantly lower used-car prices can sometimes be a cheaper option for the consumer — even when travel costs are considered.

“Shopping local makes sense for most car shoppers, but the adventurous deal-seeker could find a used car far outside their home region and still see big savings — with the added bonus of a fun summer road trip,” CarGurus data analyst Lisa Rosenberg said in a news release.

“Even for less ambitious shoppers, this research highlights just how much variability can exist on used-car prices in different markets,” she said. “Expanding your search area even moderately can sometimes unearth opportunities to save.”

CarGurus determined the savings by taking Instant Market Value data on more than 5 million used cars in the Lower 48 states, determining the IMV on poplar used vehicles in each metro area, then comparing the various metro areas.

The savings account for average airfare costs based on U.S. Department of Transportation Domestic Airline Consumer Airfare Report from the third quarter of 2016; fuel costs based on AAA figures from June 5; and it defined metro areas as 50 miles around the center of a given city.

For more from CarGurus, check out our podcast below with chief revenue officer Sam Zales.